Mortgage-stye loans are commonly used for financing solar PV projects. The borrower pays a fixed amount every month, paying down both interest and principal. This is similar to any mortgage payment or car payment. Here is how to model a mortgage-style loan:
Go to your account Database in the left navigation menu.
Locate the Financing Products to the left side of the screen.
Click on the Add Financing Product button at the top right corner of your screen
When the New Financing Product box appears type in the name of the Loan that you want to create. Click the Add button to continue.
- Once you create, you will see a new page that shows the following:
- Click the Add Loan button on the screen.
Once the Add Loan box pops up on screen go through and fill in the fields that apply to your loan here on screen:
a. Name - Loan name
b. Principal - The percentage from 1-100% for which the total project cost the loan is intended to cover. For example if all project cost is to be financed then enter 100.
c. Dealer Fee - This applies to your personal Dealer Fee that you are charged to offer this finance option to your customers.
d. Add Dealer Fee to System Cost? - This is an optional field to where you can check this box to have the dealer fee cost included in the total Loan Principal amount.
e. Interest is Tax Deductible? - This is where if the loan interest is tax deductible.
f. Loan Type - Select Mortgage Style
g. Interest Rate - The interest rate determined by the financial provider who is funding the loan goes here.
h. Duration - Length of the loan term in months, for example if it’s a 20 year loan then the total number of months is 240 (12 months/ year x times 20 years) for the duration.
i. Then click the Save button
8. Finally, make sure the loan that you have chosen is under your saved list of Financing Products.